Roadrunner Transportation Systems (NYSE: RRTS) and Core-Mark Holding (NASDAQ:CORE) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitabiliy and earnings.

Insider and Institutional Ownership

74.6% of Roadrunner Transportation Systems shares are held by institutional investors. Comparatively, 98.3% of Core-Mark Holding shares are held by institutional investors. 25.8% of Roadrunner Transportation Systems shares are held by insiders. Comparatively, 2.4% of Core-Mark Holding shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Core-Mark Holding pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Roadrunner Transportation Systems does not pay a dividend. Core-Mark Holding pays out 32.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for Roadrunner Transportation Systems and Core-Mark Holding, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roadrunner Transportation Systems 0 2 1 0 2.33
Core-Mark Holding 0 1 3 0 2.75

Roadrunner Transportation Systems presently has a consensus target price of $9.67, suggesting a potential upside of 38.89%. Core-Mark Holding has a consensus target price of $40.75, suggesting a potential upside of 9.84%. Given Roadrunner Transportation Systems’ higher probable upside, equities research analysts clearly believe Roadrunner Transportation Systems is more favorable than Core-Mark Holding.

Risk & Volatility

Roadrunner Transportation Systems has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Core-Mark Holding has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares Roadrunner Transportation Systems and Core-Mark Holding’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Roadrunner Transportation Systems $1.97 billion 0.14 $100.85 million $0.66 10.55
Core-Mark Holding $11.86 billion 0.14 $130.70 million $1.10 33.73

Core-Mark Holding has higher revenue and earnings than Roadrunner Transportation Systems. Roadrunner Transportation Systems is trading at a lower price-to-earnings ratio than Core-Mark Holding, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Roadrunner Transportation Systems and Core-Mark Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roadrunner Transportation Systems N/A N/A N/A
Core-Mark Holding 0.34% 11.42% 4.24%

Summary

Core-Mark Holding beats Roadrunner Transportation Systems on 13 of the 16 factors compared between the two stocks.

Roadrunner Transportation Systems Company Profile

Roadrunner Transportation Systems, Inc. (RRTS) is an asset-light transportation and logistics service provider. The Company offers a suite of global supply chain solutions, including truckload logistics (TL), customized and expedited less-than-truckload (LTL), intermodal solutions (transporting a shipment by over one mode, primarily through rail and truck), freight consolidation, inventory management, expedited services, air freight, international freight forwarding, customs brokerage and transportation management solutions. The Company operates through three segments: Truckload Logistics, Less-than-Truckload and Global Solutions. The Company utilizes a third-party network of transportation providers, consisting of independent contractors (ICs) and purchased power providers, to serve a diverse customer base. It primarily focuses on small to mid-size shippers.

Core-Mark Holding Company Profile

Core-Mark Holding Company, Inc. is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services. As of December 31, 2016, the Company offered services to over 43,000 customer locations across the United States and Canada through 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos and hardware stores.

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